According to the Australian Competition and Consumer Commission (ACCC) investment scams fleeced Australians of $328 million, and made up more than a third of total losses - while romance scams were the next biggest category, costing Australians $131 million, and payment redirection scams resulting in $128 million of losses.
The ACCC’s latest Targeting Scams report released on Monday compiles data from Scamwatch, ReportCyber, other government agencies and 10 banks and financial intermediaries, and is based on more than 444,000 reports.
“Last year, scam victims reported the biggest losses we have seen, but worse, we expect the real losses will be even higher, as many people don’t report these scams,” ACCC Deputy Chair Delia Rickard said.
“Unfortunately scammers continue to become more sophisticated and last year used the COVID-19 pandemic to scam and take advantage of people from all walks of life during this crisis.”
Of the $851 million in combined losses, $176 million were reported to Scamwatch alone. (all losses described below are from Scamwatch data only).
“Victoria, which was significantly impacted by the second wave of the virus, recorded the highest losses nationwide for the first time and Victorians reported $49 million in losses to Scamwatch, more than double those in 2019.” Rickard said.
“We saw scammers claiming the government restrictions meant people could not see items in person before purchase. This was a common ruse in vehicle sale and puppy scams, which both had higher reports and losses.”
The ACCC says that as people spent more time online during the COVID-19 pandemic lockdown, reports and losses for some scams also increased.
Health and medical scams increased more than 20 fold compared to 2019, accounting for over $3.9 million in losses, losses to threat based scams increased by 178% to $11.8 million, and there were more than $8.4 million in losses to remote access scams, an increase of over 74%.
The ACCC notes that phishing activity also thrived during the pandemic, especially through government impersonation scams - and there were over 44,000 reports of phishing scams, representing a 75%increase.